Spotlight

Report:

Magic Quadrant for Financial Planning Software

How does Gartner define the Financial Planning Software market in 2024?

Gartner defines financial planning software as the key tool that enables better decision making and resource allocation by supporting planning, budgeting and forecasting processes. It connects relevant operational and driver data to profit and loss, balance sheet and cash-flow financial statements. The software offers enhanced decision support and analytics that can be customized to unique planning requirements through data integration, data modeling, workflow and reporting capabilities. These capabilities all enhance a user's ability to effectively manage the planning process and financial performance. Organizations use financial planning software to improve financial planning and decision-making processes by streamlining planning, budgeting and forecasting processes, providing visibility to planning data, consistent application of logic and planning process governance.

Key Facts for Magic Quadrant for Financial Planning Software in 2024

Strategic Planning Assumptions

No strategic planning assumptions provided.

How was the Financial Planning Software market evolved in 2024?

What product features are required to be included in this year's evaluation?

What are the common features of top products in the Financial Planning Software space?

Scope Exclusions

Inclusion Criteria

Vendors must, among other requirements:

Ability to Execute — Relative Weighting

Completeness of Vision — Relative Weighting

FAQs

Q: What does this research cover?

A: This research covers the financial planning software market, evaluating 16 vendors across the Leaders, Challengers, Visionaries, and Niche Players quadrants. It analyzes vendor capabilities in planning, budgeting, forecasting, modeling, performance reporting, and analytics. The research assesses mandatory features (financial planning/budgeting/forecasting, administration functionality, data integration, reporting) and common features (scenario modeling, AI-powered planning, approval workflows, audit trails, dashboarding). It evaluates vendors on their Ability to Execute and Completeness of Vision, with particular emphasis on product capabilities, customer experience, market responsiveness, market understanding, offering strategy, and innovation.

Q: Who should use this research?

A: FP&A leaders should use this research to assess vendors best suited to offer technology solutions for their FP&A processes. The research helps organizations evaluate vendors based on their specific needs including: implementation strategy and support requirements, differentiating features and vendor roadmaps, pricing models, industry vertical requirements, geographic coverage needs, and complexity of planning requirements. Organizations can use the quadrant positioning and detailed vendor assessments to understand each vendor's strengths and cautions, helping them select solutions that align with their current capabilities, future growth plans, and strategic objectives for FP&A transformation.

Q: What are the mandatory features of vendors included in this market?

A: To be included in this Magic Quadrant, vendors must support four mandatory features: 1) Financial planning, budgeting and forecasting through user-driven models and customizable planning dimensions, 2) Administration functionality for managing planning activities including planning cycles, business rules, and security profiles, 3) Data integration capabilities with ERP, CRM, HCM and other data sources for unified enterprisewide planning, and 4) Financial planning and analysis reporting that generates standardized and customized reports for informed decision making.

Q: What are some reasons for not being included in this report?

A:

  • Does not meet minimum customer count requirement (250 live customers by 31 March 2024)
  • Does not market to customers in at least two regions
  • Does not rank in top 16 for Customer Interest Indicator
  • Does not meet revenue requirements (either $30M in cloud recurring revenue OR 20% CAGR)
  • Does not support mandatory financial planning software features
  • Does not deploy as cloud-based SaaS solution meeting all cloud service attributes
  • Was not released for general availability before 31 December 2022
  • Does not actively market to organizations with 50%+ customers having revenue above $50 million

Q: What differentiates Ability to Execute vs. Completeness of Vision?

A: Ability to Execute focuses on current capabilities, quality, customer support, and market performance - essentially how well vendors deliver and execute today. It emphasizes product/service excellence, customer experience, and market responsiveness. Completeness of Vision assesses strategic thinking, innovation, and future direction - how vendors understand market trends, anticipate customer needs, and develop cutting-edge solutions. It emphasizes market understanding, offering strategy, and innovation to shape the future of financial planning software.

Reference

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